Corporate direct financing up 2% in April

South Korea's corporate direct financing inched up 2 percent in April from the previous month due largely to a rise in bond sales, data showed Tuesday. Local companies raised a combined 24.9 trillion won ($22.1 billion) by selling stocks and bonds last month, up 492.7 billion won from the previous month, according to the data from the Financial Supervisory Service (FSS). Corporate stock sales declined 96 percent on-month to 250.4 billion won in April due to the previous month's high base. In

May 25, 2021

Consumer sentiment hits nearly 3-year high in May amid economic recovery

South Korea's consumer sentiment rose to the highest level in almost three years in May as the country's economy is on a recovery path, central bank data showed Tuesday. The composite consumer sentiment index (CCSI) came in at 105.2 for May, up 3 points from the previous month, according to the data from the Bank of Korea (BOK). It marked the highest level since June 2018, when the sentiment index came to 106.3. The latest reading also represented the fifth straight month of on-month gain. A

May 25, 2021

BOK to test feasibility of digital currency, remains cautious on issuance

The Bank of Korea is looking for a partner to work with on its pilot digital currency development program, raising market expectations that the central bank is moving closer to issuing digitalized cash. The pilot program is set to kick off in August, officials said on Monday, but stressed that it is just a part of feasibility test and that it has no plans yet for actual issuance. The central bank welcomed interested businesses to participate in the bid for a 10-month partnership deal as tech

May 24, 2021

Biz sentiment falls for June amid pandemic: poll

South Korea's business sentiment slightly fell for June due to deteriorating profitability in the manufacturing industry amid the coronavirus pandemic, a local think tank said Monday. The business survey index (BSI) of the country's top 600 companies by sales reached 102.6 for next month, down 5.1 points from May, the Korea Economic Research Institute (KERI) said in a statement. The index stayed above 100 for the fourth straight month after its March reading exceeded 100 for the first time in

May 24, 2021

S. Korea starts construction of smart farm in Kazakhstan

South Korea's agricultural ministry said Monday it has launched a pilot project to build a smart farm in Kazakhstan, as the country seeks to boost exports of smart-farming solutions. The construction is expected to be completed in October, according to the Ministry of Agriculture, Food and Rural Affairs. The smart farm, sized 1 hectare, will be used to cultivate popular produce in Kazakhstan, including tomatoes, cucumbers and strawberries. The smart farm was specifically designed to cope with

May 24, 2021

[Contribution] June is time to report your overseas financial accounts

It has been a long time since the hide-and-seek of foreign property by some wealthy people has become a serious problem worldwide. As most of them aim not to pay taxes, tax authorities around the world are focusing their capabilities on finding foreign hidden properties of tax evaders. The representative case took place in Switzerland in 2009. In 2009, the US Internal Revenue Service found that UBS Bank had concealed assets of wealthy Americans in secret accounts and helped tax evasion. The US

May 24, 2021

Container cargo volume at seaports up 5.7% in April

The volume of container cargo processed at South Korea's seaports rose 5.7 percent on-year in April amid hope for global recovery from the economic fallout of the new coronavirus pandemic, the country's oceans ministry said Sunday. Container cargo processed at the seaports reached 2.58 million twenty-foot-equivalent units (TEUs) in April, compared with 2.44 million TEUs, according to the Ministry of Oceans and Fisheries. Processed export-import container cargo jumped 6.3 percent on-year to re

May 23, 2021

[Newsmaker] LH Corp. could be broken up to prevent recurrence of land purchasing scandal

The South Korean government has been reviewing whether to turn Korea Land and Housing Corp. into a holding company and spin-off key businesses to prevent further information leaks from the company, sources close to the matter said Friday. The reports come amid a nationwide crackdown on a massive land speculation scandal centered on LH employees who abused insider information concerning large-scale state funded land development projects. According to the sources, the Ministry of Economy and Fi

May 21, 2021

Exports surge 53.3% in first 20 days of May

South Korea's exports jumped 53.3 percent on-year in the first 20 days of May on the back of robust demand for chips and automobiles, data showed Friday. The country's outbound shipments stood at $31.1 billion in the May 1-20 period, compared with $20 billion a year earlier, according to the data from the Korea Customs Service. Over the period, imports also moved up 36 percent to reach $31.4 billion. By sectors, South Korea's outbound shipments of chips, the mainstay export product, advanced

May 21, 2021

Producer prices up for 6th month in April

South Korea's producer prices increased 0.6 percent on-month in April due to a modest rise in commodity prices, extending their monthly gains for the sixth straight month, central bank data showed Friday. The producer price index, a barometer of future consumer inflation, stood at 107.68 in April, compared with 107.04 a month earlier, according to the Bank of Korea (BOK). The index advanced 5.6 percent from the previous year, the BOK data showed. The prices of agricultural goods fell 8.2 p

May 21, 2021

Renewed real estate measures coming up in June: finance minister

Finance Minister Hong Nam-ki said Thursday that the government will roll out changes to housing policies which may include real estate taxation reforms as early as next month. While maintaining the key framework and the stance of the real estate policy announced on Feb. 4, which focuses on easing building regulations and supporting redevelopment projects in urban areas to shore up the number of new houses, “some changes will be presented within the next month after collecting public opi

May 20, 2021

Household income up 0.4% in Q1 on COVID-19 relief subsidies

South Korea's household income edged up in the first quarter from a year earlier, data showed Thursday, but the gain was mostly attributable to the government's emergency handouts aimed at tackling economic fallout of the new coronavirus pandemic. The average household earned 4.38 million won (US$3,860) per month in the first quarter, up 0.4 percent from the previous year, according to the data by Statistics Korea. Household income earned through wages, on the other hand, slipped 1.3 percent

May 20, 2021

S. Korea compiles more anti-dumping cases from local steelmakers

South Korea's trade dispute agency on Thursday held a public hearing on anti-dumping cases of flat-rolled stainless steel imported from three countries, prior to its final ruling slated in July. The move came after South Korea decided to launch an investigation against Chinese, Taiwanese and Indonesian flat-rolled stainless steel products in September last year, according to the Korea Trade Commission. South Korea's top steelmaker POSCO filed the complaint with the commission over anti-dumping

May 20, 2021

S. Korea to ship W59b worth of dried laver to Japan

South Korea's oceans ministry said Thursday it has won a deal worth 58.7 billion won ($51.8 million) to export dried laver products to Japan. Dried laver, called "gim" in Korean, is usually roasted with sesame oil and fine salt and served as a side dish with Korean meals. Exports of dried laver products reached $600 million in 2020, up 3.6 percent on-year, amid growing popularity of Korean food in the Asian market. Of the volume, Japan accounted for the largest share of 22.2 percent.

May 20, 2021

S. Korea among unhappiest countries in OECD

South Korea is one of the unhappiest countries in the Organization for Economic Cooperation and Development, largely because of its long working hours and high poverty rate for senior citizens, state-run think tank the Korea Development Institute said Wednesday.  The country’s happiness level between 2018 and 2020 on average stood at 5.85 points out of 10, placing Korea at No. 35 out of the OECD’s 37 members. Only Greece and Turkey were unhappier with 5.72 points and 4.95 poi

May 19, 2021

Major tour agencies cut 15% of workforce over COVID-19 fallout

South Korea's six major travel agencies cut some 15 percent of their workforce over the past year as travel demand has taken a massive hit from the COVID-19 pandemic, data showed Wednesday. At the end of March, six listed travel firms had a total of 4,268 employees, down 15.4 percent from a year ago, according to the data by the Financial Supervisory Service. Industry leader HanaTour shed 13 percent of its workforce, and Mode Tour cut 10.7 percent, the data showed. In the first quarter of thi

May 19, 2021

Climate response fund to be set up in 2022 to bolster renewable energy transition

The South Korean government will support the development and commercialization of clean energy technologies and set up a climate response fund next year to achieve the goal of going carbon neutral by 2050. Finance Minister Hong Nam-ki said Monday that preparation for the scenario to achieve net zero emissions is “in full swing,” while stressing the importance of a preemptive policy response related to climate cooperation. South Korea plans to bolster its original target of reduci

May 17, 2021

BOK faces policy decisions amid growing inflation signs

South Korea’s central bank faces decisions in whether to maintain or raise its key interest rate as a bigger-than-expected jump in global consumer prices have heightened inflation concerns. The Bank of Korea is scheduled to hold its fourth monetary policy meeting this year on May 27, in which they are expected to decide whether to keep the national interest rate anchored at a record-low of 0.5 percent or change course. While they may have smoothly maintained a dovish stance so far, ami

May 17, 2021

Residents' FX deposits rise for 3rd month in April amid robust exports

Foreign currency deposits at banks in South Korea rose for the third straight month in April as exporters increased dollar holdings amid brisk overseas shipments, central bank data showed Monday. Outstanding foreign currency-denominated deposits held by residents amounted to $94.83 billion as of end-April, up $2.13 billion from the previous month, according to the Bank of Korea (BOK). The FX deposits rose for the third consecutive month in April after they declined for the first time in four m

May 17, 2021

Banks' Q1 net profit jumps on KDB's one-off gains

South Korean banks saw their first-quarter earnings jump 71 percent from a year earlier due to one-off gains from state-run Korea Development Bank (KDB), data showed Monday. The combined net profit stood at 5.5 trillion won ($4.8 billion) for the January-March period, compared with a profit of 3.2 trillion won a year earlier, the Financial Supervisory Service (FSS) said in a statement. In the first quarter, the KDB reported an unusually high net profit of 1.4 trillion won, thanks to stock inv

May 17, 2021